Ellis' three companies—Ellis Partners LLC, Ellis Las Vegas LLC and Ellis Gaming & Entertainment LLC (dba Ellis Gaming)—began filing for chapter 7 bankruptcy liquidation in November due to failed plans for a gaming house on the Las Vegas Strip and litigation between the Elk Valley Ranchiera and Ellis, reported the Las Vegas Sun.

Ellis had borrowed money from the Elk Valley Rancheria, as well as the Muckleshoot Indian Tribe in Washington and the Shoshone-Bannock Tribes in Idaho, for development of his proposed Las Vegas resort. Elk Valley Rancheria sued Ellis in 2008, claiming the tribe loaned him $480,000 for development of the Ellis Las Vegas casino resort, and Ellis never paid them back. Ellis upholds the tribe converted the loan into equity in an Ellis company, so he does not owe them money.

But attorneys for the Elk Valley Rancheria are still probing Ellis' finances and trying to recover money. The tribe's claim now totals $1.04 million with interest and attorney’s fees, reported Vegas Inc. In court papers filed last week, tribal attorneys say they want to investigate potential transfers of money and assets. If sufficient assets are located, the tribe may try to seize them through the bankruptcy process, reported Vegas Inc.

Ellis, his wife Katherine and several Ellis-related companies are required to appear for financial examinations in June at the offices of the tribe’s Las Vegas law firm, Gordon & Rees LLP, ordered by the clerk of the U.S. Bankruptcy Court for Nevada.

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